恒隆集团(00010) - 2022 - 中期财报

Revenue and Profitability - Revenue increased by 6% to HKD 5.605 billion for the six months ended June 30, 2022[5]. - Shareholders' net profit decreased by 5% to HKD 1.439 billion, with earnings per share dropping to HKD 1.06[5]. - Basic net profit attributable to shareholders increased by 7% to HKD 1.600 billion after excluding property revaluation impacts, with basic earnings per share rising to HKD 1.18[5]. - Total revenue increased by 6% to HKD 5,605 million for the six months ended June 30, 2022, compared to HKD 5,275 million in 2021[21]. - Operating profit slightly rose by 2% to HKD 3,929 million, up from HKD 3,848 million in the previous year[22]. - Basic earnings attributable to shareholders increased by 7% to HKD 1,600 million, with corresponding earnings per share rising to HKD 1.18[21]. - The net profit for the same period was HKD 2,507 million, down from HKD 2,872 million in 2021, reflecting a decrease of 12.7%[89]. - The total comprehensive income for the period was HKD (2,755) million, a significant decrease from HKD 4,163 million in 2021[89]. Rental Income and Performance - Total rental income remained flat at HKD 5.289 billion[5]. - Rental income in mainland China increased by 2% year-over-year, while rental income in Hong Kong decreased by 4%, resulting in total rental income remaining similar to the previous year[9]. - The company's rental margin in mainland China decreased by 1 percentage point to 68%, while in Hong Kong it decreased by 2 percentage points to 81%[9]. - The overall leasing income for the first half of 2022 remained stable at HKD 5.289 billion, with mainland property leasing income increasing by 1% in RMB and 2% in HKD, offsetting a 4% decline in Hong Kong properties[24]. - The overall rental income from high-end malls decreased by 1%, while the income from mid-range malls fell by 2%[26]. - The rental income from Wuxi Hang Lung Plaza increased by 7% to RMB 195 million, supported by a 3% rise in occupancy rate to 98%[28]. - The cumulative sales growth from Wuxi, Dalian, Kunming, and Wuhan Hang Lung Plazas has more than compensated for two months of rental losses in Shanghai[15]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.21 per share, payable on September 29, 2022[5]. - The company declared an interim dividend of HKD 0.21 per share, consistent with the previous year's dividend[23]. - The company paid dividends totaling HKD 885 million, slightly up from HKD 858 million in the previous year[95]. Capital Expenditure and Investments - The company plans to complete the Hangzhou Hang Lung Plaza project in phases starting in 2024, which requires significant capital expenditure[11]. - Capital commitments for properties under development amounted to HKD 18 billion, with construction progress expected to catch up in the second half of 2022[45]. - The company allocated HKD 11.01 billion for the acquisition of investment properties and development properties in the first half of 2022, slightly down from HKD 11.18 billion in the same period of 2021[112]. Debt and Financial Management - The company maintains a low debt-to-equity ratio and has arranged multiple additional financing sources, ensuring stability in operations[11]. - The net debt to equity ratio increased to 24.8% from 22.3% in the previous year[20]. - The total debt as of June 30, 2022, was HKD 44,898 million, down from HKD 45,883 million as of December 31, 2021, with 28% denominated in RMB[50]. - The average repayment period of the overall debt portfolio was 3.2 years as of June 30, 2022, compared to 3.0 years as of December 31, 2021[54]. - Financial expenses decreased by 4% to HKD 744 million in the first half of 2022, with the average effective borrowing rate dropping to 3.5% from 3.9% in 2021[57]. - The company issued green bonds worth HKD 1.2 billion in the first half of 2022, with sustainable finance now accounting for 31% of total debt and available credit[48]. Market Outlook and Economic Conditions - The long-term economic growth in China is expected to remain between 4% to 5% annually, which is higher than most other major regions[10]. - The company expects performance in the second half of the year to be slightly better than the first half, provided there is no further deterioration of the pandemic situation[12]. - Despite external challenges, the company reported strong and resilient performance in the first half of 2022, with rental income still growing despite a decline in retail sales[13]. Management and Governance - The average age of the management team has been reduced significantly, enhancing the company's talent pool[19]. - The company maintains a strong governance framework, emphasizing a competent board, sound internal controls, and effective risk management[62]. - The board consists of 11 members, including four executive directors and four independent non-executive directors, ensuring a balanced distribution of power[63]. - The company has complied with the Corporate Governance Code as stipulated in the Hong Kong Stock Exchange Listing Rules during the reporting period[66]. Employee and Shareholder Information - As of June 30, 2022, the total number of employees was 4,199, including 1,028 in Hong Kong and 3,171 in mainland China[82]. - Total employee costs for the six months ended June 30, 2022, amounted to HKD 947 million[82]. - Major shareholders included Chen Wenbo with 546,308,580 shares (40.12%) and Chen Tanqingfen with 522,423,080 shares (38.37%)[79]. Property and Development Projects - The company is positioned to complete its residential projects without the financial pressures faced by many mainland developers, allowing for steady progress in construction[17]. - The Wuhan Henglongfu project, the company's first high-end serviced apartment brand in mainland China, is expected to begin phased completion in the second half of 2023[46]. - The Aperture project is on track for completion in 2023, with ongoing construction despite delays caused by the pandemic[47].